A. P. Moller – Maersk, global integrator of container logistics, announced in a statement that it has signed an agreement with Saudi Ports Authority “Mawani” committing to an investment of 136Million USD (510 million Saudi Riyals) over a period of 25 years to set up an Integrated Logistics Park at the Jeddah Islamic Port in Saudi Arabia.
The agreement was signed in the presence of His Excellency the Minister of Transport and Logistics, Chairman of the Board of Directors of the Authority, Engineer Saleh bin Nasser Al-Jasser, Richard Morgan, Managing Director Maersk West & Central Asia, and several officials of related sectors. The agreement was signed by His Excellency the President of the Saudi Ports Authority, Mr. Omar bin Talal Hariri, and the Managing Director of Maersk Saudi Arabia, Mr. Mohammad Shihab.
The greenfield project spread over an area of 205,000 sq. m. will be the first of its kind at the Jeddah Islamic Port offering an array of solutions with an aim to connect and simplify the supply chains of importers and exporters in the Kingdom. Maersk will also be investing heavily in renewable energy to power this facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
Saudi Arabia’s Jeddah Islamic Port sits strategically on the Red Sea Coast connecting the international shipping route between the east and the west. With over 5 million Twenty-feet Equivalent Units (TEUs) of containers flowing in and out of Jeddah Islamic Port, it is the largest port in terms of volume and cargo handling in Saudi Arabia and second largest in GCC (Gulf Cooperation Council) countries. Over 2.5 million TEUs tranship through the Jeddah Islamic Port every year. The port also connects to hinterland through a strong road and rail network.
The bonded and non-bonded warehousing & distribution (W&D) facility will cover more than 70% of the total area while the remaining part will act as a hub for transhipment, air freight and LCL cargo. The W&D part will have several different sections to accommodate general warehousing (food & beverages, furniture, automobiles, chemicals, textile & apparel and machinery, appliances & electronics) and cold chain storage (fruits & vegetables, protein and confectionary & consumables). To cater to the rapid penetration of eCommerce in Saudi Arabia, the facility will also have a dedicated eCommerce fulfilment centre. The Integrated Logistics Park will be able to handle annual volumes close to 200,000 TEUs across different products.
Maersk will deploy state-of-the-art warehouse management system that implements modern technologies and digital solutions for efficient inventory management, track & trace at unit-level and offers rich dashboards for higher visibility and deeper insights. These systems will help in improving efficiencies and build a cost competitive edge for Maersk’s customers.
Maersk is also charting its path to make the facility carbon-neutral eventually. The warehouses, cold storages and office building will all be powered with renewable solar energy. Even the yard machinery including forklifts, reach stackers, empty container handlers, trucks and other vehicles deployed for the movement of cargo will be electric, statement mentioned.
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